Wow! Exchanges track how you spend btc!

[kingplaya4]

Apparently this guy sent it to multiple different wallets before gambling with it, but coinmama found out and has banned him

https://www.reddit.com/r/Bitcoin/comments/bdr9nw/coinmama_is_a_nosey_bitch_tracking_your_coin/

Makes me wonder if Monero or some other privacy coin is the future. I realize he can go to an atm, buy from local bitcoin etc, but a lot of people don't have access to ATMs or don't feel comfortable with P2P. Anyway, what do you think about this? Privacy coins are the way to go, or are their privacy features just waiting to be unravelled?

[1714981987]

1714981987

[1714981987]

1714981987

[NeuroticFish]

1. I am almost sure that this guy didn't do the job as good as a mixer could do.
2. A better level of privacy would be nice. But as you said, there's Monero (and others). He could have done a way better job with Monero.

But I don't blame Coinmama, if this is in the ToS...

[rosezionjohn]

As the email says, it is part of the terms and services which the user agreed upon (probably without reading) when he signed up with Coinmama. It's a good practice on the part of the exchange to make sure ToS are being followed. It's the users fault.

[Mr.Ease]

Interesting story... And yes - Privacy coins are the way to go, you took the words out of my mouth.

Since we all know Bitcoin isn't really an ideal coin for anonymity anymore, this is why XMR has a promising future along with many of the privacy coin contenders
And since we are on the topic of privacy coins, My sig. - Veil is a great new coin just for this exact thing: Anonymity and privacy.

[kingplaya4]

Most people don't read the TOS, although I will from now on even it takes 2 hours. Not a user of coinmama so it doesn't affect me personally, but was very surprised about this. Seems a violation of what crypto is all about.

[Wendigo]

That guy did a botched job of covering his tracks most likely or he didn't ever bother doing anything in the first place. But yeah some exchanges frown upon transactions coming from gambling sites so unless using a mixer better not risk getting your account closed.

[Ailmand]

That guy did a botched job of covering his tracks most likely or he didn't ever bother doing anything in the first place. But yeah some exchanges frown upon transactions coming from gambling sites so unless using a mixer better not risk getting your account closed.

Well, it's actually his fault for not reading the terms and conditions of services. Even our local wallet prohibits sending and receiving funds from gambling or casino sites. As a user, you we probably read thru the TOS to avoid our account from being frozen or locked.

[logfiles]

Not only privacy coins but one can also anonymize transactions using
- Mixer services
- Better Atomic swap platforms that don't require login such as coinswitch
- Traditional DEXs

[cryptjh]

I'm surprised to see an exchange use time to track where their sold coins end and then starting to ban their customers for gambling, but with so many exchanges to trade on, the only thing to do now, is just to move on to another exchange.
Reading the terms and conditions of services takes so much time that only the fewest people read them when I send money to an exchange I just want to know if I can withdraw my crypto from the exchange.

[Digitalbitcoin]

1. I am almost sure that this guy didn't do the job as good as a mixer could do.
2. A better level of privacy would be nice. But as you said, there's Monero (and others). He could have done a way better job with Monero.

But I don't blame Coinmama, if this is in the ToS...

Yes, Coinmama or any third party service provider can be put their users with limited access to their services. Not only coinmama but many other, offering wallet and exchange services to users acquiring little charge.

But in my own perspective, these all altcoin or blockchain based wallet and transaction services are decentralized, and these are known and introduced with that particular specification, in such case, if these third-party services keep watch and track on transaction done by users can lead towards monopoly. This can harmful for both users as well as an exchanger.

If things are still taking under one roof called centralization, then its quite impossible for Bitcoin in the current phase.

[Pearls Before Swine]

Coinbase does this exact thing if I'm not mistaken.  Crypto gambling is illegal in the states to the best of my knowledge, and if they see you depositing bitcoin from a casino or withdrawing it to one, Coinbase will delete your account.  That was true as of a couple of years ago when I heard it was happening but I don't know if that's still their policy.

It should not come as a surprise to anyone that exchanges do this.  Just like with kyc policies they have to protect themselves and comply with gov't regulations.  They don't advertise the fact that they track you, of course, but most of the big exchanges are probably doing it.

[lyks15]

This post have a two faces,a possitive sude and it's negative side. I can say that the possitive side of this issue is our bitcoin will becone more secure because there is an monitoring but I am afraid on the negative side that it can abuse about our privacy because they can view and see our every transaction I think our freedom as a bitcoin owner will violate.

[joniboini]

This post have a two faces,a possitive sude and it's negative side. I can say that the possitive side of this issue is our bitcoin will becone more secure because there is an monitoring but I am afraid on the negative side that it can abuse about our privacy because they can view and see our every transaction I think our freedom as a bitcoin owner will violate.

How can it be more secure when essentially this is just a basic feature if you have a blockchain? What those exchanges did are pretty much looking/seeing where did their users spent their money (withdraw) and then try to look whether those addresses are gambling or other sites that are violating their ToS. There's no increase of security here, just basic blockchain explorer thing.

Exchanges who do this must comply with regulations on their respective country, so if there's a positive side to this, is that they can close/delete any account that's somehow related to any banned services on that country.

[Kaller]

Exchanges are required by law to know their customers also known as kyc they have to know your ID and name and address technically from a legal standpoint in order to operate legally, but there are still some exchanges which do not require this for some reason.

[pooya87]

Apparently this guy sent it to multiple different wallets before gambling with it, but coinmama found out and has banned him

his comment doesn't even make sense. he is saying he "Made multiple transactions with multiple companies" what the hell is "companies"! it seems like he may not even know what he was doing, and i wouldn't be surprised if he actually used the same address he received coins from Coinmama to gamble with. otherwise if he simply used one intermediary address there was no way that Coinmama could prove that that third address belonged to him and he could have denied everything.

there is another possibility that he might have been doing it many times. like buying bitcoin 20 times, send to 2 addresses then use them to gamble! that is obvious.

in the end, that is what you get by not reading the ToS and using centralized services instead of using bitcoin.

[mk4]

I don't think services like Coinmama banning users for gambling is anything new, really. Also, I don't think sending bitcoin from address to address isn't going to help that much. He pretty much just made tracking his funds more tedious to track, when done manually by a person(which I don't think is the case).

If you want to be harder to track, mixers and or Wasabi wallet[1] is the way to go.

[1] https://wasabiwallet.io/

[3x2]

Ahh, Coinmama is a old exchange in crypto ecosphere, it is a shame that they are doing this for their users. I will prefer the coins that is sent from exchange to be tumbled in a mixer and then arrive to my personal address.
Other than that, i would prefer Monero as it is almost untraceable.

[spadormie]

I wonder why didn't he use a bitcoin mixer. It could leave you anonymous by mixing your bitcoin with others.

Here are some of those mixers:
-Chipmixer
-Bestmixer
-Bitcoincloak Bitcoin Mixer
-Bitblender

[MMS2017]

yes it is good if we have many  exchanges and we allow them to track our transaction so they can do it because we do transaction from their exchange. And it is now automatic that when you make bitcoin transaction you can send or receive through these exchanges so they can know where you want to send.

[pushups44]

Apparently this guy sent it to multiple different wallets before gambling with it, but coinmama found out and has banned him

https://www.reddit.com/r/Bitcoin/comments/bdr9nw/coinmama_is_a_nosey_bitch_tracking_your_coin/

Makes me wonder if Monero or some other privacy coin is the future. I realize he can go to an atm, buy from local bitcoin etc, but a lot of people don't have access to ATMs or don't feel comfortable with P2P. Anyway, what do you think about this? Privacy coins are the way to go, or are their privacy features just waiting to be unravelled?

It's weird that exchanges are held responsible for what users do with their funds. This is akin to ATM machines and banks being held responsible for drug transactions. At least with cryptocurrencies people can be monitored more easily.

[Yakamoto]

Apparently this guy sent it to multiple different wallets before gambling with it, but coinmama found out and has banned him

https://www.reddit.com/r/Bitcoin/comments/bdr9nw/coinmama_is_a_nosey_bitch_tracking_your_coin/

Makes me wonder if Monero or some other privacy coin is the future. I realize he can go to an atm, buy from local bitcoin etc, but a lot of people don't have access to ATMs or don't feel comfortable with P2P. Anyway, what do you think about this? Privacy coins are the way to go, or are their privacy features just waiting to be unravelled?

Exchanges are often bound by government regulations once they exceed a certain size, then they have to start complying with laws which often require the exchange to actively take a role in monitoring the activity of their users. It's a nasty thing, and I couldn't ever support it, but that's how it is.

As for the future being based around privacy coins or some other method of limiting the traceability of Bitcoin being implemented, it's unlikely. The community will have to identify their own ways of circumventing the monitoring that does occur, otherwise, they will have to comply with whatever restrictions are placed on them. It's unfortunate, but that is what happens.

I don't think there will ever be a major shift to a privacy coin within the community, but casinos may recommend their use as a means of avoiding the restrictions and spying performed by exchanges.

[DigitalCyberius]

Hmm, that's interesting, but not too surprising. Not sure if anything will change in the near future. We like privacy, but unfortunately, it's been smeared with a bad reputation (which also isn't surprising). You still have the option to use privacy coins if you want, but probably won't get mainstream adoption.

Have a good day,
The Cyberius team.

[Pursuer]

exchanges and generally any centralized place have always been tracking how you spend bitcoin and what you do with it. that is not a new thing not to mention that each of these services have clear Terms of Services which you agree with when you start using them so you can't really complain when they did what they promised you to do!

in fact that is why bitcoin exists, so that when you dump your fiat for bitcoin you no longer have to answer to anybody about how you choose to use your own money!

[Icygreen]

#1. Yes, Bitcoin needs better privacy.  We don't need another coin to do it for bitcoin because it'll be built on top. Schnorr signatures and mimble-wimble are attempting to solve some of this now and segwit is the base layer entrance to allow these to happen without a hard fork.  Good things take time to build, be patient.

#2. I respect what I think coinmama is trying to do.  I think that it wants to re-associate BTC with real people and not perpetuate that BTC is only for gamblers, crooks, drug dealers and degenerates.  I don't like that they want to play central authority to a permission-less tech.  Seems ridiculous. Censorship is not the way forward.  

[bitbunnny]

There is some kind of conflict between privacy of Bitcoin users and legal provisions and obligations for exchanges and other platforms.
From the begininig Bitcoin has lost a great deal of privacy due some techiques that ebable tracing transactions but also because of KYC rules and anti money laundering and anti terrorism financing laws. To my opinion law obligations could only get more strict so Bitcoin users will have to decide what is more important to them, privacy or general protection and safety.

[DBronze98]

This post have a two faces,a possitive sude and it's negative side. I can say that the possitive side of this issue is our bitcoin will becone more secure because there is an monitoring but I am afraid on the negative side that it can abuse about our privacy because they can view and see our every transaction I think our freedom as a bitcoin owner will violate.

The blockchain system is known to be highly hierarchical and private. I find this very bad when you're self-right violated by anyone you don't want. Controlling transactional information is also one of the ways that wives control husbands who are gambling on the Crypto platform  It is a fun share of me and hope not to attack anyone here.

[jmigdlc99]

No surprise here. Companies collect your data, even in crypto.

Heck they even offer to pay people to do it and people willingly accept. E.g. membership reward cards and all those reward point schemes. You get points discounts and freebies as the cost of the company collecting data on what where and how you buy things. They use data to control consumers.

If privacy is the goal then truly decentralized and privacy centered crypto is the way to go.

[Kakmakr]

Coinbase does this exact thing if I'm not mistaken.  Crypto gambling is illegal in the states to the best of my knowledge, and if they see you depositing bitcoin from a casino or withdrawing it to one, Coinbase will delete your account.  That was true as of a couple of years ago when I heard it was happening but I don't know if that's still their policy.

It should not come as a surprise to anyone that exchanges do this.  Just like with kyc policies they have to protect themselves and comply with gov't regulations.  They don't advertise the fact that they track you, of course, but most of the big exchanges are probably doing it.

Yes, it is illegal and one of the reasons why a lot of people have lost all their coins or access to their accounts on Coinbase. This is also one of the reasons why you do not use exchanges as a wallet, but rather a way to buy bitcoins to transfer it via a mixer service to another wallet. You then spend the coins from that wallet and not directly from the exchange wallet.

The same goes for the bitcoins that you received from gambling, do not deposit those coins directly from the gambling site. Send it to another wallet and then channel it through a mixer, before you send it to the exchange. 

[BitHodler]

exchanges and generally any centralized place have always been tracking how you spend bitcoin and what you do with it. that is not a new thing not to mention that each of these services have clear Terms of Services which you agree with when you start using them so you can't really complain when they did what they promised you to do!

This. I fail to understand how people continue to complain about how bad centralized exchanges are while they agreed to all terms (terms 99.9% of the people are too lazy for to read) before their account was created.

What I also noticed is how people have been hyping up decentralized exchanges, but most of them haven't even tried using it. They either point at low volumes or that these exchanges aren't developed enough.

Low volumes is not an excuse because most people can only afford low amounts anyway. Not being developed enough isn't an excuse either because they allow you to buy and sell, what more do you need?

The only point of valid criticism is that you can't day trade on decentralized exchanges the way you can do it on centralized exchanges.

[blueteam09]

With exchange platforms that track user history is a criminal act when trying to track the privacy of others. I have every right to make the transactions I want and are not allowed to follow my history. We need to ask these exchanges to stop their customer tracking activities because this is a violation. Crypto investors all want their identity as secure transaction history.

[susila_bai]

I think that they have done this because the user used the funds for gambling that is the main reason of banning him, Apart from that withdrawing to multi address should not be problem, if i am not wrong.

[Pursuer]

#1. Yes, Bitcoin needs better privacy.  We don't need another coin to do it for bitcoin because it'll be built on top. Schnorr signatures and mimble-wimble are attempting to solve some of this now and segwit is the base layer entrance to allow these to happen without a hard fork.  Good things take time to build, be patient.

you are wrong about almost everything here!
first bitcoin does not "need" better privacy. it already offers a very good level of privacy. what you had in mind is anonymity and that will not happen either since bitcoin doesn't need that either.
secondly, Schnorr signatures are not for privacy! there is only one thing that is remotely related to Schnorr and that is the aggregated signatures that offers a little privacy for multi signatures not generally.
as for SegWit, we still need a hard fork to enable things such as Schnorr since it is changing the way signatures are calculated and will probably need a new OP code which doesn't exist at the moment.

[maydna]

That is why bitcoin has services like bitcoin mixer so they can not track on how we spend our bitcoin. At least, if they still want to track, they will difficult to located on where we spend the bitcoin. But yes, in these situations, I think using monero will be good.

Perhaps, the strategy to use bitcoin for gambling would be like this:
1. We have bitcoin, and we send it into exchanges which don't use KYC.
2. Then exchange it into other coins which is available on the gambling website and then send it into the gambling site and then you can play many games.
3. When you can win, you can send it into the exchanges and sell it to convert into bitcoin.

That strategy will be a bit confusing but I think that will works wells

[muslol67]

Apparently this guy sent it to multiple different wallets before gambling with it, but coinmama found out and has banned him

https://www.reddit.com/r/Bitcoin/comments/bdr9nw/coinmama_is_a_nosey_bitch_tracking_your_coin/

Makes me wonder if Monero or some other privacy coin is the future. I realize he can go to an atm, buy from local bitcoin etc, but a lot of people don't have access to ATMs or don't feel comfortable with P2P. Anyway, what do you think about this? Privacy coins are the way to go, or are their privacy features just waiting to be unravelled?

It may be useful to use mixer applications for such situations. Or, using DEXs, you can make the money untraceable. We are losing our decentralized system slowly. So, we have to be careful more.

[CBANX2]

It depends on the exchange's terms of use, in order to prevent some keos they track send and receive Bitcoin transactions through their exchanges.
 

[pinoyden]

Privacy coins are private and that means you cannot be traced but bitcoin can also do that because there are now services called mixers where you can mix you bitcoin so that no one can trace your original source on where did you got your bitcoin or who is the original owner of it  .  sure exchanges can track your coins after you withdrew or deposit them but that is not their job . whats the point of doing it to thier costumer  ?

[Virtual miner]

Apparently this guy sent it to multiple different wallets before gambling with it, but coinmama found out and has banned him

https://www.reddit.com/r/Bitcoin/comments/bdr9nw/coinmama_is_a_nosey_bitch_tracking_your_coin/

Makes me wonder if Monero or some other privacy coin is the future. I realize he can go to an atm, buy from local bitcoin etc, but a lot of people don't have access to ATMs or don't feel comfortable with P2P. Anyway, what do you think about this? Privacy coins are the way to go, or are their privacy features just waiting to be unravelled?

When you signup for any exchange you agree to give your privacy into the hands of a third party. It's pretty obvious that when any exchange doesn't gives you a private key of the wallet then that exchange has whole control of your wallet. So they can surely track you to. I don't find anything like sad in this. The user should have used a private key monero wallet or should have used a good mixer so that it was impossible to track him down. There are ample of people using this it's for the very first time I have seen such a case.

[kingplaya4]

Gambling is pretty stupid- How many of us would have a lot more BTC without it? But I fail to see the big deal with it. It is not a criminal act to throw my money in a garbage can should I choose. I think you guys underestimate how much bitcoin is currently supported by the gambling economy. America just legalized sportsbetting and will likely catch up with europe on other games at some point. People are going to gamble whether the government agrees or not, and I don't think this use should be a smear on bitcoin. That's pretty nutty that TOS includes that, that should be a pop-up warning message or at least on coinmama's main page, but of course they'd rather have it somewhere they know people won't read it so they can make the sale then close the account on you.

[Slow death]

Some people have commented on this and I want to add some things. we have to stop with things like these:

Coinmama is a nosey bitch tracking your coin.

bitcoin is decentralized. but we can not oblige exchanges that have their owners to be decentralized. The exchanges must respect the laws of the governments and they certainly do not want to have problems with the governments.

About anonymous currencies, if every year we are under pressure from governments, eventually we will have a highly regulated market and the anonymous currencies will be targets of governments and I believe that few people will risk using anonymous currencies

[dothebeats]

Cool thing to know that Coinmama's ToS extends well beyond their grasp. I mean, once people bought something from you, shouldn't consumer-merchant relation already end there once people paid something "in full" from you? I think in this instance, Coinmama still wants control from the coins they released to people and that's somewhat scary. Not that I'm with the dude gambling or anything but it's not Coinmama's business anymore on where will the coins be used.

Perhaps those who want to gamble wants to use the aid of privacy coins or mixers just to avoid getting banned from exchanges.

[kentrolla]

Apparently this guy sent it to multiple different wallets before gambling with it, but coinmama found out and has banned him

https://www.reddit.com/r/Bitcoin/comments/bdr9nw/coinmama_is_a_nosey_bitch_tracking_your_coin/

Makes me wonder if Monero or some other privacy coin is the future. I realize he can go to an atm, buy from local bitcoin etc, but a lot of people don't have access to ATMs or don't feel comfortable with P2P. Anyway, what do you think about this? Privacy coins are the way to go, or are their privacy features just waiting to be unravelled?

When you signup for any exchange you agree to give your privacy into the hands of a third party. It's pretty obvious that when any exchange doesn't gives you a private key of the wallet then that exchange has whole control of your wallet. So they can surely track you to. I don't find anything like sad in this. The user should have used a private key monero wallet or should have used a good mixer so that it was impossible to track him down. There are ample of people using this it's for the very first time I have seen such a case.

Yes it is not surprising. Every user will accept terms and conditions while signing up in the exchange. Once you signed up all the data's and transactions are logged in their server and those data's are used for research and marketing reason hence there is small risks involved in these hence all the details are logged by exchanges.

[NeuroticFish]

Yes, Coinmama or any third party service provider can be put their users with limited access to their services. Not only coinmama but many other, offering wallet and exchange services to users acquiring little charge.

But in my own perspective, these all altcoin or blockchain based wallet and transaction services are decentralized, and these are known and introduced with that particular specification, in such case, if these third-party services keep watch and track on transaction done by users can lead towards monopoly. This can harmful for both users as well as an exchanger.

If things are still taking under one roof called centralization, then its quite impossible for Bitcoin in the current phase.

Clearly tracking user's actions by his money is not nice. At least, unlike who knows how many others tracking your money, these tell you in their ToS that they're watching you.
As long as Bitcoin blockchain allows it, you should be extremely naive to think that the money (bitcoin) flow is not tracked at all.

This is imho not centralization. Users are more than free to use other services. Yes, if we'll end up with a small and ever decreasing number of services, then this would be a problem. But it's not the case.

[klaaas]

exchanges are getting hard and harder with there rules.
It must have been a direct and known address he used to identify the wire.
if the wire jump multiple addresses how will the exchange know who end up as owner of the coins.

[reda]

exchanges are getting hard and harder with there rules.
It must have been a direct and known address he used to identify the wire.
if the wire jump multiple addresses how will the exchange know who end up as owner of the coins.

One more thing when the transaction made to direct bitcoin wallets and then that transaction goes to other wallets and it has been used for the any purchase means how the exchanges track the usage of individuals. Then when the each exchanges facing 1 million plus transactions each day then how they spend to track the users.
We need to think all these factors before we accepting the article shared by OP. May be he is looking for views itseems.

[djsugar]

Exchanges track many more things than that. The biggest manipulator of the price and the volume are exchanges only. They keep a track of your buy and sell order, your stop loss, you leverages etc etc and then they play accordingly. Sometimes you will find a sudden red or green candle with heavy volume resting traders in a one go. These are exchange moves only.

[MonsterV]

Apparently this guy sent it to multiple different wallets before gambling with it, but coinmama found out and has banned him

https://www.reddit.com/r/Bitcoin/comments/bdr9nw/coinmama_is_a_nosey_bitch_tracking_your_coin/

Makes me wonder if Monero or some other privacy coin is the future. I realize he can go to an atm, buy from local bitcoin etc, but a lot of people don't have access to ATMs or don't feel comfortable with P2P. Anyway, what do you think about this? Privacy coins are the way to go, or are their privacy features just waiting to be unravelled?

This is the importance of reading Tos before using a service. Sometimes we immediately approve Tos without reading it, even though when we approve Tos it means we have to obey all the rules that exist in the service. And here coinmama is not wrong in terms of privacy, they have previously notified via high-fives, all depends on the user

[veleten]

I wonder how is this news?
exchanges have been tracking your coins, governments tracking tainted coins , blockchain offers less privacy than you think
even before Coinmama exchanges and wallets  like Coinbase or coin.ph were shutting down accounts connected to gambling wallets
if it is in their TOS it is up to you tou use their service or not , but do not complain after your accounts get shut

[okala]

I believe the user know the privacy policy of coinmama that there don't support the deposits into gambling site's where gambling is forbidden or may be the user is not aware of this privacy policy, it good to read all the terms of any exchange before using them for some transactions.

[Kensyin]

I think we must obey all the rules in the service.
maybe the user doesn't know this privacy policy
the only thing to do now, just move to the other one to exchange.

[jjbanks994]

Exchanges are required by law to know their customers also known as kyc they have to know your ID and name and address technically from a legal standpoint in order to operate legally, but there are still some exchanges which do not require this for some reason.

From the exchange's perspective it was a wise decision for both legal precautions and protecting their other customers. Firms like CipherTrace are set in place to help with money laundering and combat terrorist financing. People worry they are tracking every detail but it's really more large amounts of money

[klaaas]

someone mentioned this tweet,
If a coin joiner is build inn and become the norm trackers and 3rd party mixers wont stand a chance anymore.

[gentlemand]

From the creator of that topic - 'Bounced coin from wallet to wallet. Made multiple transactions with multiple companies. They still sniffed out where some of it went. Am I silly or is that ridiculous?'

I can understand where the exchange is coming from if he's buying and sending it straight to a gambling site from the exchange wallet. Multiple transactions and dilution down the line? That's fucked up if you ask me. By that point it's out of their hair and they should've long stopped caring. For all they know it could be in a completely different person's wallet by then.

[kingplaya4]

The exchange is ridiculous. They should only ban direct transfers from the exchange to gambling sites if their moral scruples or the long arm of the US is bothering them. Anything more than that is overkill even the most old school republican wouldn't expect them to do.

[Kakmakr]

someone mentioned this tweet,
If a coin joiner is build inn and become the norm trackers and 3rd party mixers wont stand a chance anymore.

Why? People still use more than one Anti-virus program on their computers and they will also use more than one coin tumbler method to mix their coins. You get very paranoid people out there and these people want to make sure that a single solution will not compromise their security and/or identity.

Just imagine if you donate money to an organization like Wikileaks and your government gives a 5 year jail sentence to people who donate money to sites like that, would you trust one mixing solution, when you donate to them?

[Lizzylove1]

Complete privacy coin is the way to go, just imagine someone that thought he was anonymous with bitcoin usage only to be tracked and disciplined. Although agreeing with any terms and conditions of any institution is key, again privacy must be respected too. We have some great projects coming out with good anonymous coin transfer option.

[DreamStage]

If you read their Terms of Use:

3.14. You agree that you will not use the Services to perform criminal activity of any sort, including but not limited to, money laundering, illegal gambling operations, terrorist financing, or malicious hacking. In addition, you warrant not to use methods to conceal the location from which you access the Site and that you will disclose to the Company your accurate and true location. Should the Company determine in its sole discretion that the activity on your Account is suspicious or related to any prohibited activity or illegitimate operation, the Company may cancel or suspend your Account, block any outstanding transactions, deny any new transactions, and/or freeze any funds available on your Account.

They should only ban you if you gamble with illegal operations lmao. If you gamble with legitm certified Casinos there shouldn't be any rule against it.
Unless the guy in question was in some country where gambling was illegal.

[Mandoy]

Well there is a simple explanation with that.Some cryptocurrency website has a main wallet. If you deposit a certain amount of cryptocurrency to your address on that website, those coins and tokens will be transferred to the main wallet of that site. So here is a possible explanation to the conspiracy.

It is possible that coinmama have already known the main wallet address of the gambling site maybe because it has already an encounter or an experience with that site before and it recorded their mainwallet address.

So when that user withdraw his funds from the gambling site to coinmama, the gambling site sends his withdrawn coin from its main wallet to coinmama. The problem is that when coinmama double cheks the txid they will eventually found out that the address where the the coin comes from is from a certain gambling site.

After the findings then coinmama will take necessary actions based on the users agreement.

[alyssa85]

1. I am almost sure that this guy didn't do the job as good as a mixer could do.
2. A better level of privacy would be nice. But as you said, there's Monero (and others). He could have done a way better job with Monero.

But I don't blame Coinmama, if this is in the ToS...

The easiest way to hide is to send to an exchange, buy an altcoin. Withdraw the alt to another exchange and change it back to btc, and then use it to gamble. (Or simply gamble with the alt).

Buying the alt stops the tracking.

[Pamadar]

Apparently this guy sent it to multiple different wallets before gambling with it, but coinmama found out and has banned him

https://www.reddit.com/r/Bitcoin/comments/bdr9nw/coinmama_is_a_nosey_bitch_tracking_your_coin/

Makes me wonder if Monero or some other privacy coin is the future. I realize he can go to an atm, buy from local bitcoin etc, but a lot of people don't have access to ATMs or don't feel comfortable with P2P. Anyway, what do you think about this? Privacy coins are the way to go, or are their privacy features just waiting to be unravelled?

When you signup for any exchange you agree to give your privacy into the hands of a third party. It's pretty obvious that when any exchange doesn't gives you a private key of the wallet then that exchange has whole control of your wallet. So they can surely track you to. I don't find anything like sad in this. The user should have used a private key monero wallet or should have used a good mixer so that it was impossible to track him down. There are ample of people using this it's for the very first time I have seen such a case.

Yes it is not surprising. Every user will accept terms and conditions while signing up in the exchange. Once you signed up all the data's and transactions are logged in their server and those data's are used for research and marketing reason hence there is small risks involved in these hence all the details are logged by exchanges.

Common when we agree, and most of those centralized exchange will ask for KYC when you needed to withdraw huge amount of your assets, by providing your data information you will now be track by any means as your logs are stored inside the system, every transactions can be traced now under your name, so there's no surprise if you are using third party serves.

[klaaas]

Why? People still use more than one Anti-virus program on their computers and they will also use more than one coin tumbler

Because it gets mixed so the amount of wallets supporting it would not matter, its a feature. The amount of times would matter inn this case.

[shesheboy]

when we agree, and most of those centralized exchange will ask for KYC when you needed to withdraw huge amount of your assets, by providing your data information you will now be track by any means as your logs are stored inside the system, every transactions can be traced now under your name, so there's no surprise if you are using third party serves.

We can still be traceable with or without a kyc because there is a transaction recorded on the exchange that we are using . if ever you give your kyc to them , they will only use it to track you more easily if ever they found out that your guilty on doing cyber crimes  .

Why? People still use more than one Anti-virus program on their computers and they will also use more than one coin tumbler

Because it gets mixed so the amount of wallets supporting it would not matter, its a feature. The amount of times would matter inn this case.

What do you mean by amount of times ? The delay ? And what about the anti virus ? I dont think it does matter when we are using a mixing service  . theres no harm on using a mixing service as long as you are using a trusted one  .

[sukoyomi]

1. I am almost sure that this guy didn't do the job as good as a mixer could do.
2. A better level of privacy would be nice. But as you said, there's Monero (and others). He could have done a way better job with Monero.

But I don't blame Coinmama, if this is in the ToS...

The easiest way to hide is to send to an exchange, buy an altcoin. Withdraw the alt to another exchange and change it back to btc, and then use it to gamble. (Or simply gamble with the alt).

Buying the alt stops the tracking.

Same as I do, it's just by doing it will makes the value of our coins we have reduce a little, but it doesn't matter I consider it a little payment for security or even consider it a withdrawal deduction from the exchange. A little complicated but more safe.

[poyaiscoin]

One day everyone will wake up, BTC will crash and one of the Private coins will take over.  They will be the NEW Trading pairs soon enough... I honestly can't believe they have algorithms tracking this.  I am dumbfounded.  Its like having a security camera and drone attached to you everywhere you go.

Even FIAT money can't do that to you.  What cash you pull out from an ATM can disappear without a trace.  No one will know you bought dirty anime manga....lol

[veleten]

Why? People still use more than one Anti-virus program on their computers and they will also use more than one coin tumbler

Because it gets mixed so the amount of wallets supporting it would not matter, its a feature. The amount of times would matter inn this case.

running more than one antivirus programme is detrimental to your system's health and speed
while mixing your coins in two or more mixers could , potentially , add more privacy to your bitcoin stash
thats if the mixers are not using tainted coins that could have the opposite effect , attracting more attention to you

[xvids]

As the email says, it is part of the terms and services which the user agreed upon (probably without reading) when he signed up with Coinmama. It's a good practice on the part of the exchange to make sure ToS are being followed. It's the users fault.

This is why you really need to read what you are going to agreed on.
Some of my fellow country men also experience some issue on our local wallet,
Some of them got some issue regarding to gambling I couldn't really recall what happen to their wallet and their money when Coins found out that their money comes from gambling.

[pixie85]

One day everyone will wake up, BTC will crash and one of the Private coins will take over.  They will be the NEW Trading pairs soon enough... I honestly can't believe they have algorithms tracking this.  I am dumbfounded.  Its like having a security camera and drone attached to you everywhere you go.

Even FIAT money can't do that to you.  What cash you pull out from an ATM can disappear without a trace.  No one will know you bought dirty anime manga....lol

If you think that bitcoin can crash and be taken over by another coin in a matter of days you're in for a surprise. This is impossible. Even if this happens one day it will be a long process taking months if not years of slow decline.

The exchanges are private companies registered somewhere and if that country forbids gambling they have to make sure their users don't gamble and comply with the law. If I saw that an exchange that I'm using bans people for what they do with their coins I'd move somewhere else.

[darylalban]

They don't necessarily track every single transaction just larger amounts. I was reading this feedback from ciphertrace (who recently partnered with Binance) tracking 1k USD movements within a single day (upwards of tens or hundreds of transactions)

https://ciphertrace.com/response-to-fatf-on-vasp-regulation/

[Thirdspace]

From the creator of that topic - 'Bounced coin from wallet to wallet. Made multiple transactions with multiple companies. They still sniffed out where some of it went. Am I silly or is that ridiculous?'

I can understand where the exchange is coming from if he's buying and sending it straight to a gambling site from the exchange wallet. Multiple transactions and dilution down the line? That's fucked up if you ask me. By that point it's out of their hair and they should've long stopped caring. For all they know it could be in a completely different person's wallet by then.

perhaps he didn't realize some amounts from change addresses was used when he's sending to a gambling site
if he's not too technical he won't notice there are change amounts back to his wallet
then sending from his wallet consolidating all his utxos will show connections between them
so by simply checking on that last transaction, it shows the leftover of his coins being sent to a gambling site

[thirdlight]

What do you want?  And such a lie to be.  But I do not see anything terrible here.  Everything can be solved.  In any case, it does not harm anyone.

[Bountyhonter]

Since they mentioned it in their terms and conditions (t&c) then it's the user that's at fault, most people don't bother reading terms and conditions because it can take hours to finish reading the terms and conditions of most sites.

If the user didn't want to be tracked and doesn't mind paying a little fee then he/she should have sent the funds to an exchange then convert it to another currency then withdraw the currency he exchanged it to and deposit it on another exchange to convert it back to the original currency he needs. Since exchanges use contract address then the funds should be very hard or even impossible to track.

[Reid]

This is an issue which had been talked before and Coinbase was the good example for it.

Before it was legal to send bitcoin to gambling sites directly using Coinbase. They saw that. (that means they are really detecting it even  before)
Used their TOS and added the exemption of sending to gambling site. If caught will be banned.
Now, there are a lot of ways to do it. You could just send it to a private dummy address and then mix it or go directly to the gambling site deposit address.
You will just be spending more for tx fee but that is to avoid losing everything.

[sanida]

You can be tracked easily If you don't use mixing service like chip mixers and other mixing services out there. I think coin mama is a big company who has some tight security with their unique tracking system. no wonder he got caught and got banned.

[Romanianz]

You can be tracked easily If you don't use mixing service like chip mixers and other mixing services out there. I think coin mama is a big company who has some tight security with their unique tracking system. no wonder he got caught and got banned.

assets that are in cryptocurrency will be very difficult to be able to manipulate wherever the transaction is created will definitely be very easy to see from the transaction track record.

[Anonylz]

Yeap, cryptocurrency is not anonymous after all, if you look at it almost 90% of people who are involve in crypto have pass through the process of kyc in the hands of centralized exchange, so basically exchange owns all our personal info which can be connect to wallets that we transact with, i think the idea of anonymous should no longer be applied to crypto.

[mirawantirinjana]

why is there tracking like that?
Are we free to spend the bitcoin that we have? what do they want with tracking?
are there security reasons? or are there fears of misappropriation of funds with bitcoin?

[Rick_avxo]

Yeah well am really not surprised because a friend of mine tried using coinmama to buy some BTC but she got banned were she was trying to use a demo first without passing the KYC procces. i think if Every Exchangers act like coinmama our digital Asset will sure have a fine future..

[figmentofmyass]

coinmama isn't alone in this. coinbase has been doing this for years in an attempt to comply with USA federal law (the UIGEA and wire act), which prohibits services from transmitting money to/from gambling services on behalf of customers. i'm guessing coinmama has similar rationale.

That guy did a botched job of covering his tracks most likely or he didn't ever bother doing anything in the first place.

likely this. the OP was intentionally unspecific and i would be surprised if he made much effort to avoid being seen depositing directly to gambling sites. he probably has no idea what he's doing.

[leea-1334]

Good luck I would say to exchanges who want to track how I spend my BTC I withdraw usually to some other service like to sort of mix my coins, and then I withdraw again to my own wallet. So okay maybe the service that I do that can track my spendings but they have to check my wallet and see which address I spend to. But if I use mainly Bitpay, how can they track it anyway? They only see us spending to Bitpay wallets they cannot see our merchants, right? Because is that not how most people "spend" BTC?

[Crypto Girl]

Apparently this guy sent it to multiple different wallets before gambling with it, but coinmama found out and has banned him

Coinmama wouldn't ban a certain account if it doesn't violate any rules in ToS. And I'm pretty sure that he also made multiple accounts to receive his coins.

Quoted some lines from their ToS under Account suspension, Termination and Cancellation.

(vi) you abuse the Services provided by the Company, including by opening multiple accounts and/or taking advantages of promotions in bad faith;
(iii) the Company has reasonable suspicion that a transaction involves illegal activity, including without limitations, money laundering, terrorist financing, fraud, or any other crime

https://www.coinmama.com/terms-102

Perhaps, you may want to rephrase your title.

[Alpinat]

It is the users default that's why coinmama banned him. He should always use those mixers website there are some of it that are circulating in the cryptoworld now. He just send it to multiple wallet right? So meaning there is still transaction there and it can still be traced and I guess sending coin to multiple wallets is not recommended.

[Mike Mayor]

I don't really like those things can be tracked like that. I believe it his the owner's bitcoins and they can do whatever they want with them. All the uptight countries have this strict laws and want to make online crypto gambling illegal or ban it entirely.

The thing I want to know is. Did the buyer send the crypto he bought directly to their gambling account? IF so then that is a bad idea. You never ever withdraw from one place to another, in case something happens otherwise no one will be able to help you. Always transfer to a wallet under your control. If this was traced through a wallet that this person used then that sounds like such bs because you being told you can't use your money for whatever you want to. Does this only apply when going from fiat to crypto to crypto to crypto as well?

[jak3]

I did not see any reason of not believing Crypto coins but believing that an exchange is tracking my actions is completely upon their ToS. If a user has found that they are going to accept all the conditions of the exchanges then you cannot say anything about it you have to simply accept it. But in this case the guy I tried to become smart and the exchange outsmarted him.well that was pretty obvious.

[Upgate]

If they didn't catch up with him, he would have done worst or even some other person. II believe the coinmama are trying  to send a strong message to those trying to go against their terms and conditions.

[MadeinCoin]

Yeap, cryptocurrency is not anonymous after all, if you look at it almost 90% of people who are involve in crypto have pass through the process of kyc in the hands of centralized exchange, so basically exchange owns all our personal info which can be connect to wallets that we transact with, i think the idea of anonymous should no longer be applied to crypto.

Crypto has been known as an anonymous digital currency since the launch of bitcoin, I don't think that anonymous ideas must be abolished. Crypto users can still use DEX to get freedom of anonymity.
And the person should not send by exchange, but send it first to the personal wallet under his control and then send to the gambling site.

[ðºÞæ]

Not just exchanges:

Lightning Labs reks your privacy and anonymity sharing with Facebook & Google Lightning Fast whilst using The Lightning Network.

[poodle63]

The thing is gambling prohibited in some regions and that's their responsibilities to comply with the regulation. Not to mention that exchanges tracking its users is a really common sense, I mean blockchain is kinda transparent and the address your money was sent to could be traced to its hot wallet. It's either they caught you or they got license revoked by the government.

[rdluffy]

It's insane this kind of behavior from an exchange

If you buy coins and trade, sell or give to someone, and this person likes to gamble, will you be punished to?
If you pay anyone, and this person do something wrong, will you be punished for this person?

[Shenzou]

Apparently this guy sent it to multiple different wallets before gambling with it, but coinmama found out and has banned him

https://www.reddit.com/r/Bitcoin/comments/bdr9nw/coinmama_is_a_nosey_bitch_tracking_your_coin/

Makes me wonder if Monero or some other privacy coin is the future. I realize he can go to an atm, buy from local bitcoin etc, but a lot of people don't have access to ATMs or don't feel comfortable with P2P. Anyway, what do you think about this? Privacy coins are the way to go, or are their privacy features just waiting to be unravelled?

Well this guy said that he moved his coins from wallet to wallet, in this situation we can't blame Coinmama for taking actions since it is stated in their Tos, their tos is related to the country where they are located and that  means that all transaction need to be traced, even though that this guy didn't do a good job in hiding his tracks by using mixers this is still absurd and really shocking to see that this is came to be, because crypto was supposed to be anonymous and break you free from the laws and do whatever you want with your money, and this defies everything the crypto stands for.

[spacehopper]

Exchanges tracking our movements? Need to think again about them.Are we having the privacy as much as we think we have?These news saying something else.Sometimes they are made agreement (with terms and conditions when we sign up)As above comments,People don't read those careful.Exchange services companies getting the full profit from that."Read everything before you register" will be best advice we can give for these kind of situations.

[LuckyBtc]

It's insane this kind of behavior from an exchange

If you buy coins and trade, sell or give to someone, and this person likes to gamble, will you be punished to?
If you pay anyone, and this person do something wrong, will you be punished for this person?

Exchanges wants to save their asses, It's why they track transactions and close account. If you want to gamble make a different wallet specifically for gambling or use privacy coins. I never connect my main wallet with gambling related transactions.

[teddyelwyn]

To my knowledge exchanges hire third party cyber security firms like ciphertrace and identity mind to help watch movements of money for AML compliance purposes. I don't think they analyze every detail of how btc is spent but more so on illegal motives and movements

[boty]

The more days I joined the crypto currency, the more I was amazed by the technology that was run in crypto currencies. Exchange sites are increasingly sophisticated so that between these exchange sites are connected and can track btc coins. If this technology can be further developed, I am sure there will be no more fraud in crypto currencies. All will play the game with responsibility. My advice, just developing technology between exchange sites easily connected like ATM machines of various banks that are easily connected.